Jordan Electricity
Sector and RE
Program
Eng. Abdelfattah Aldaradkah
NEPCO’s Managing Director
Jordan Overview
Total area:
89 213 sq. Km
Population:
9.5 million
Sea Port:
Aqaba
Coastline:
26 Km
GDP:
37.52 billion
GDP /capita:
5,214.19 USD
Transmission Grid
Network Length
(Km/Circuit)
132KV Lines: 3103
132KV Cables: 97
400KV: 904
Peak Load and Energy
14553
13850
2208
5%
2544
2.49
2009
15460
2010
16706
16573
6%
7%
1%
2660
2770
2975
5%
2900
15%
5%
4%
7%
-3%
2.08
2.23
2.11
2.08
1.81
2011
2012
Energy (Gwh)
The growth over last 10 years:
2013
2014
Peak Load (MW)
Energy:
Peak Load:
18588
18555
17565
6%
0%
3300
3250
14%
1.85
1.77
2015
Losses (%)
6.4%
7.2%
-2%
2016
System Installed Capacity 2017-2024
3861
3569
4015
4176
4343
4516
3712
4695
4695
4695
2019
4695
2018
4695
4250
2017
4250
3790
3432
2020
2021
2022
2023
2024
Capacity
Peak Load
ELECTRICITY SECTOR
The convergence of Jordan’s rising energy consumption
trends alongside decreasing security of energy supply is
impacting public budget fiscal space for border development
goals and country ability to users domestic energy services .
The government has been focusing on adopting several
policies to satisfy growing energy demand and decrease its
reliance on imported expensive fossil fuels.
The energy demand grew dramatically in the past years in
Jordan: 5.5% year for primary energy demand (88% source
from oil and oil product) and 7.5% year for electricity. This
reflects both population and economic growth.
ELECTRICITY SECTOR
Jordan is dependent on fuel imports for about 96% of the
energy needs with a substantial impact on the county’s GDP .
Jordan spend more than 17.6 % of its GDP to cover the
cost of meeting its energy needs with a large share focused on
electricity generation.
The Jordan electricity sector change during the last years.
from total governmental owned market to the market where
different parts in the value chain has become separated from
each other with for examples 3 distribution companies and 6
generation companies .
Stats owned national electric power company NEPCO role in
the market is to act as a single buyer.
Electricity Sector
Policy Maker
Regulator
Ministry of Energy &
Mineral Resources
Energy and Mining Regulatory
Commission(EMRC)
CEGCO
Generation &
Power
Producers
SEPGCO
IPPS
Interconnection
Transmission
NEPCO
JEPCO
Distribution
IDECO
EDCO
Single Buyer Model
Fuel cost
(Pass through)
Fuel
Generation
Companies
Renewable
Projects
PPAs
TCAs
Electrical
Interconnection
PPAs
TCAs
NEPCO (System Operator)
Distribution
Companies
Regulated Tariff (EMRC)
Principal
Consumers
THE IMPORTANCE OF RENEWABLE ENERGY TO
JORDAN
 Highly dependency on imported energy (96%).
 Scarcity of local energy and fuel recourses.
 High growth of primary energy demand.
 Growth of population ( Fertility, Immigration).
 Security Supply and Diversity.
 Good
potential of wind profile regime and high
potential of solar radiation.
JORDAN ENJOYS WORLD CLASS QUALITY
WIND ENERGY
• Wind speed
reaching between
7.5 to 11.5 m/s in
some places.
• Wind projects are
now feasible and
competitive
JORDAN ENJOYS WORLD CLASS QUALITY
SOLAR ENERGY
• High solar radiation
figures of 5 – 7 kWh/m2
per day with about 300
sunny days per year.
• Jordan future Renewable
Energy source is Solar
Energy.
Direct
Proposal
EPC
As a result, many
projects are aimed at
building solar power
and wind power
capacities in an effort to
the set target of 10% of
the country’s primary
energy mix by 2020
Wheeling
Net Metering
DIRECT PROPOSAL LEGAL FRAMEWORK





In year 2010 Jordan enacted a Renewable Energy Law that
provides for the legal framework for the sector.
The Law permits and encourages the exploitation of renewable
energy sources at any geographical location in the Kingdom. By
allowing for the Direct Proposal Submissions of projects for
generating electrical power and connecting to the grid (Ref price
list).
The Law provides that the tariff that the project developer sets
out in its proposal shall “within an acceptable range according
to the Reference Price list”.
The Reference Price list is prepared and updated by Jordan’s
EMRC together with relevant bodies.
Tariff then changed to be competitive but still within updated
Reference Price list
Net Metering Legal Framework
The Law permits home-produced energy to be
sold to grid thereby accelerating the adoption of
clean energy technologies at both residential
and commercial levels (Net Metering).
 Exempting all Renewable Energy and Energy
Efficiency Systems and Equipment's from Sales
Tax and Custom duties.


The investors can benefit from Jordan
Investment Promotion Law and the
Development Zones’ corporate tax incentives
and customs tax exemptions.
Wheeling Legal Framework



The Law permits home-produced energy to be sold to
grid thereby in a place and consume instead of it in
other place.
Wheeling Charges are applied: 0.6 and 0.9 Cent/ kWh
(transmission and distribution networks respectively)
and 2.3 % and 6% of the energy is deducted as losses
(transmission and distribution networks respectively).
This cause bulk costumers who subsides the Tariff to
have this system instead paying electricity to the
government (huge financial losses to the government).
For Renewables to have the right position
within the global Energy Context:
• Stable Regulatory Framework.
• Adequate and Transparent Public Policies
and Targets.
• Clear Financial and Support Schemes.
• Well defined Infrastructure Provisions
(Lands, Grid connections, etc.)
• Stable Electrical Grid.
• Bankable Project Agreements.
The Project Agreement (PA’s):

Power Purchase Agreement.
Transmission Connection Agreement
(Describe the electrical interconnection for the
project into the grid).


Governmental Guarantee Agreement.
Direct Agreements.
(Between Lender Agent and NEPCO to provide
step in right for lender in case of Project
Company not remedy it is defaults)

PA’s are part from tender documents.
There is a room for the Shareholders
(Project Company), Lenders, and the
Contractor to have their non substantial
comments on the PA’s.
GoJ Allowing Negotiation Rounds to the
PA’s.
Power Purchase Agreement:

Protection for Force Majeure.

Protection for Change in Law.

Tax Exceptions.

Take or pay.

Protection of currency Exchange Rate (JOD VS USD).

Independence Engineer (third party) to accept Commissioning & COD.

Commissioning Energy.

Deemed Energy.

Partial Commissioning.

No penalties in case of late Commercial operation Date (longstop date).

Detailed Technical description, requirements, & schedule.

Sharing the related technical documents and drawings between Parties.

Coordinating committees and meetings between Project Company and
NEPCO.
WIND PROJECTS
Type
Round/
Project
Name
Regime
Tafilla
(JWPC)
Direct
117 MW
Proposal
Commercially operated on 16th Sep 2015.
Fujaij
(KEPCO)
Alrajif
Direct
Proposal
Direct
Proposal
Direct
Proposal
Direct
Proposal
EPC
50MW
PPA is signed and get Financial close
Under construction, COD: 2018
PPA is signed and get Financial close
Under construction, COD: 2018
PPA is signed & COD: 2019
50MW
PPA is signed & COD: 2019
80 MW
Commercially operated in 2016.
KOSPO
Wind
Projects
Xenel
Alhussein
Capacity
89.1 MW
82 MW
Status
Mass
Direct
100 MW
Proposal
PPA is signed & COD: 2019
Shobak
Direct
50MW
Proposal
PPA is signed & COD: 2019
SUCCESS STORY
IN
RENEWABLE ENERGY
RE Installed Capacity in MW
2016
2017
2018
2019
2020
RE
1373.8 Installed
Capacity
716.2 in MW
209.8
312.8
647.8
1173.8
Wind
197
197
372.2
616.2
WtE
0
0
40
40
80
406
509
1,060
1,830
2,170
PV
Total
RE Generated Energy in GWh
2016
2017
404
%2.2
PV
%
603
%3.2
552
%3.0
Wind
%
-
2018
1,248
%6.5
1,727
%8.8
2,008
%10.0
298
%1.5
596
%3.0
4,287
%21.7
5,251
%26.1
%0.0
%0.0
Total
957
%5.1
1,155
%6.1
2,590
%13.4
System
Consumption
GWh
18,588
2,648
%13.2
1,043
%5.4
%
%
2,262
%11.5
2020
552
%2.9
298
%1.5
WtE
2019
18,960
19,339
19,726
Capacit
y Factor
20,120
%22
RE
Generated
Energy in
GWh
%32
%85
RE Challenges:







Variability and intermittency in supply according to weather
condition.
Uncertainty of energy production forecasting.
Fast ramping, cant followed from conventional units.
Difficulties in balancing between the generation and the load.
Power Quality Problems.
Inflexibility
RE share
Curtailed energy is still paid from NEPCO.
will exceed
25% in 2020
All above challenges are
maximized when you
have high RE share, it is
become challenging to
manage
Action Plan & Solutions:
NEPCO has taken real protective action plan

Electrical Battery Storage to be considered in Round 3.

Pump storage under studying.

Electrical Interconnection with gulf countries and Iraq.

Special energy forecasting systems that considering RE will be
implemented in the system.
Thank You